It’s no secret that bitcoin and other cryptocurrencies are fighting what appears to be an uphill battle for adoption. While there are investors and early adopters who are fully on board the crypto train, the fact remains that it is still considered a niche by many companies.
Amid the battle of various cryptocurrencies, many companies are hesitant to invest time and resources in implementing crypto payment processing. However, when looked at differently, luxury companies may find that now is the perfect time to integrate crypto into their cash registers.
The rich are looking for new ways to spend money
Statistics from Forbes show that about 30 percent of the richest people in the world surveyed have invested some of their capital in crypto and other forms of “new money.” In addition, a Wealth-X report found that self-made wealthy individuals are much more likely to own crypto and adjacent investments such as NFTs.
These findings point to the fact that many people within the luxury demographic are willing to think outside the box and are not afraid to adopt new technology. The crypto market may be going through a downturn, but these investors understand the importance of thinking long-term about money.
It is also worth noting that many wealthy crypto investors are younger, self-made individuals. In the US alone, nearly 60 percent of cryptocurrency owners fall in the 18-44 age bracket. Because so many of these people are young and tech-savvy, this kind of advanced technology makes brands that much more attractive as luxury shoppers look for companies to do business with.
This is a major reason that now is the right time to accept crypto. Another reason is that regulators are taking an active interest in the cryptocurrency market. This means improved safety and security, which could make crypto more attractive to the wealthy (and the general population), so it’s wise to get ahead of the curve when implementing.
Luxury technology could pave the way to profitability with crypto processors
The luxury segment must remember that their customers are willing to pay a premium price, but it must be accompanied by a premium experience. This extends to a holistic, simple checkout.
At Mirai, we decided to take the plunge early on and accept crypto payments for our flights. Surprisingly, about 70 percent of our customers switched to crypto payments as soon as we gave them the option!
We found that our luxury customers are more loyal than ever now that we’ve given them more options. In addition, cryptocurrencies such as bitcoin are highly versatile and easily accessible, making the entire checkout process streamlined and painless.
What’s good for your customers is also good for your business. We found that implementing crypto payments could potentially boost profit margins to double digits for luxury technology. This is especially true for startups that often operate with a wafer-thin budget.
Overall, the cryptocurrency market may be in a downturn right now, but that doesn’t mean it has lost its value with the rich. In fact, this may be the best time for luxury brands to jump on the crypto train and bring in a bigger chunk of customer loyalty.